Let’s zoom in on a specific market– Sacramento, CA. The David Greene Team helps investors in this area so it’s one we have a close eye on!
Recently, we’ve heard from some skeptics that the influx of people moving into the Sacramento area is only a temporary trend of people migrating from the Bay Area due to COVID-19 and that they’ll soon return to the Bay Area once life returns to normal.
We’re about to bust that myth! In 2018, there were more one-way U-Haul trips to Sacramento than any other area so it doesn’t seem to be a COVID-19 phenomena. In fact, we’re expecting the influx to continue making it a desirable market for investors.
How’s Inventory Looking?
When taking a look at the available inventory across the U.S. we’re able to see why buyers feel such a tight squeeze and sellers are feeling confident when listing their home for sale.
As of January 2022, inventory continued to fall nationwide. This is one reason why we’re seeing such tough competition for buyers, multiple offers, and offers being accepted well above asking price.
In Sacramento, we’re seeing a similar inventory supply. It’s apparent that inventory is at an all time low in this market. But is that a bad thing?
Yes it is competitive but it’s a signal that it’s a market that many people are flocking to and will likely continue. For investors it may mean paying a higher purchase price than some markets but you’ll likely see strong appreciation more quickly in addition to steady increases in rent.
If you’re curious about where prices are falling in the Sacramento area, we’re seeing the majority of homes falling in the $500,000-750,000 range. It still is possible to find homes below $500,000 but there may be tighter competition with other buyers.
What’s Next?
Sacramento is a hot market and isn’t showing signs of cooling down. We’ll be keeping a close watch to see what unfolds with inventory, prices, and competition as we head into spring!
